By Mackenzie Tatananni

Kimberly-Clark stock tumbled Tuesday after the owner of Kleenex and Huggies trimmed its full-year guidance and said tariffs could nudge costs higher.

Kimberly-Clark posted adjusted earnings of $1.93 a share in the first quarter, slightly beating analysts' calls for $1.90 a share. This compares to $2.01 a share reported a year earlier.

Sales declined 6% to $4.84 billion in the quarter, narrowly missing analysts' calls for $4.89 billion. Organic sales, excluding the impact of divestitures and business exits, fell 1.6% in the U.S.

Kimberly-Clark stock was down 3% to $135.92, after falling even lower in premarket trading. The benchmark S&P 500 was up 1.1%.

A cut to the company's full-year guidance appeared to being weighing on shares the most, as Kimberly-Clark pointed to "potential incremental costs from a more uncertain geopolitical landscape."

Management anticipates full-year adjusted operating profit to be flat to positive on a constant-currency basis from the prior year. Previous forecasts called for high single-digit percentage growth on a constant currency basis.

The weakening of the U.S. dollar appeared to factor into other guidance adjustments. The company said it expects reported net sales to reflect a negative impact of approximately 200 basis points from currency translation, compared to approximately 300 basis points previously.

"The current environment will now mean greater costs across our global supply chain versus our expectations at the beginning of the year," CEO Mike Hsu said in a news release. However, he believes the company will be able to "offset these costs over time."

Write to Mackenzie Tatananni at mackenzie.tatananni@barrons.com

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April 22, 2025 10:17 ET (14:17 GMT)

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